11 Apr Saving money on insurance means asking the right questions
Anyone looking to purchase home and contents insurance need to be aware of a number of must-dos and common mistakes.
When it comes to home and contents insurance, loyalty rarely pays off, but research doesn’t always pay off.
Australians possessed almost 25 million household insurance policies in total in 2020, according to Honey Insurance COO Angelo Azar, and the vast majority of these were renewed without a second thought.
He explained that this amounted to roughly 20 million policies being renewed by devoted clients of their insurance company.
In 2021, consumers will be a little more fickle.
Mr. Azar noted that more and more customers are looking around for insurance, citing recent research from Roy Morgan. In just one year, the percentage of customers who renewed their insurance without looking for a new provider dropped from 80% to 68%.
Although still extremely expensive, the trend indicates that consumers want to spend more wisely, and they should, according to Mr. Azar.
He claimed that for many buyers, this approach begins with setting aside time to thoroughly comprehend the kind of insurance coverage you’re looking for.
The more you are aware of your search criteria, the better.
Do you have a firm estimate of the cost to rebuild your home if it is covered? It’s completely fine if you don’t, he said.
Using third-party data or by providing a percentage-based safety net over your insured amount, Mr. Azar highlighted that many insurance companies are prepared to pay in the gaps for things like demolition, debris removal, and preparation for your new house.
Others might not, he continued, and you might be left with a sizable gap if you do need to contact your insurance company for assistance and discover that the coverage was insufficient for your requirements.
Afterwards, you might wish to compile a list of unique things that you want to have greater limits applied to.
Even if there is a very alluring discount present, you should always consider whether a product will actually fit your needs.
According to Mr. Azar, it is advisable to look for deals that honor your commitment and steer clear of ones that are obviously intended to entice you.
When it comes time to renew, many insurance companies give savings to new clients only to take them away, he claimed.
According to Mr. Azar, shopping around is just as crucial when it comes to renewing your insurance as it is when you initially decide to sign up for one.
He pointed out that Australians often spend 27% more when renewing their home and contents insurance than do new clients.
Check around to see what insurance companies will offer as a reward for your good behavior and what they will offer you as a sign-up bonus that they won’t later withdraw, advised Mr. Azar.
He suggested searching for insurance companies that offer smart gadgets to assist with the management of policy risks or discounts based on your loyalty and history of not filing claims if you consider yourself to be a good risk manager.
Mr. Azar noted that if you’re wanting to further optimize your insurance costs, it would be worthwhile to consider the option of raising or lowering your excess because it might directly affect the cost of the premium.
“Inversely, a higher excess translates into a smaller premium. But you should always make sure the excess is a sum you can afford to pay if you ever need to file a claim,” he advised.
Last but not least, Mr. Azar urged those looking for the best house and contents insurance to contact reputable insurance companies if they have any special queries.
This will make sure you can sign up for an insurance that offers you what you need, he said, so you won’t be unpleasantly surprised if you ever need to file a claim.
Finding the most affordable insurance might be laborious, but the rewards can go beyond simple mental clarity.
Making sure you have the correct level of coverage could prevent you from being caught off guard because some industry studies indicate that up to one in five household insurance claims are rejected or withdrawn.
It can be simple to choose the least expensive choice, but Mr. Azar advised doing your research and understanding what you are paying for.
Give us a call at 08 82314709 or you may also reach us at info@centrawealth.com.au. Get in touch with us to find out how insurance could help you look after your family and your lifestyle.
Article courtesy of Nestegg.
